Ryder System, Inc. - R - close: 54.54 change: +0.55

Stop Loss: 49.90
Target(s): 59.50
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Last Friday shares of R managed to breakout from its two-week consolidation and rally to new three-month highs. The stock was showing relative strength again today. While there is potential resistance near $55.00 we could see R make a run at its 2011 highs near $60.

I am suggesting we open small bullish positions tomorrow morning but only if both shares of R and the S&P 500 index open positive. We'll use a stop loss at $49.90 but more conservative traders might want to consider a stop closer to $51.00 instead. Our multi-week exit target is $59.50. FYI: The Point & Figure chart for R is bullish with an $87 target.

NOTE: Thursday morning we will likely see R with a small gap down thanks to a 29-cent dividend. The dividend isn't payable until mid December but shares will begin trading ex-dividend on Thursday.

*see Entry Details Above*

Suggested Position: buy R stock @ the open

- or -

buy the 2012 Feb. $57.50 call (R1202B57.5) current ask $2.55

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 727 thousand
Listed on November 15, 2011